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BP close to $15bn final settlement over Gulf oil spill

BP could face damages under the Clean Water Act of up to $17.5 billion (Sean Gardner)

BP is nearing a settlement with US authorities over the Gulf of Mexico oil spill that could leave it taking another $11billion (£7 billion) hit.

The deal would resolve all criminal and civil penalties and draw a line under the most tumultuous period in the company’s history. The FTSE 100 group and the US Department of Justice hope to unveil the settlement by September, in time for the Democratic party convention. A resolution would be a coup for Bob Dudley, the chief executive, who is under pressure from shareholders over his stuttering attempts to revive the oil giant’s fortunes.

BP shares closed on Friday at 438p, down a third from 650p on April 20, 2010, the day the Deepwater Horizon oil rig exploded, killing 11 workers and unleashing the largest spill in American history.

The spectre of a long legal battle with the government has weighed heavily on the company.